Williams v Williams (No. 2)

The case of Williams v Williams (No. 2) involved the plaintiff, a son seeking further provision from his deceased father's estate, and the defendant, the executor of the estate. The dispute centred around the valuation of a property offered as part of a settlement and the appropriateness of indemnity costs awarded against the plaintiff. The matter was heard in the Supreme Court of Victoria.

The court was required to determine whether the defendant's settlement offer constituted a valid Calderbank offer, which would entitle the defendant to indemnity costs if the plaintiff did not accept the offer and ultimately received a lesser award from the court. Additionally, the court needed to assess whether the settlement offer was no less favourable than the court's eventual orders and whether it was reasonable for the plaintiff to decline the offer. These questions were crucial in determining the appropriateness of the indemnity costs awarded.

In its reasoning, the court found that the settlement offer did indeed qualify as a Calderbank offer, as it was genuine and made without any preconditions. The court also determined that the offer was no less favourable to the plaintiff than the court's orders, as the value of the property offered, after accounting for the liabilities, was less than the monetary award granted by the court. Consequently, the court found that it was reasonable for the plaintiff to decline the offer and awarded indemnity costs against the plaintiff.

The court ordered that the plaintiff pay the defendant's costs of the proceedings, including the indemnity costs, in the amount of $348,000. The court's decision highlighted the importance of considering the totality of the settlement offer, including any associated liabilities, when assessing its favourability to the plaintiff.